Posts from ‘November, 2009’

THE WALL STREET JOURNAL

NOVEMBER 30, 2009, 5:55 A.M. ET

LONDON (Dow Jones)–Exclusive talks between Royal Dutch Shell PLC (RDSB.LN) and India’s Essar Oil Ltd. (500134.BY) over the sale of three European refineries will continue for an unspecified period beyond Monday’s deadline, a Shell spokesman said.

“Shell and Essar jointly confirm that negotiations for the sale and purchase of our three refineries at Stanlow and Germany will continue beyond the end of November,” the spokesman said.

As part of plans to sell 15% of its global refining capacity, or about 600,000 barrels a day of capacity, over the next three years in a restructuring program, Shell is selling the Heide and Harburg refineries in Germany and the Stanlow plant in the U.K.read more

Financial Times

Oil and gas chiefs win bonuses in spite of missing their targets

Several oil and natural gas companies in the US and Europe boosted their chief executives’ remuneration last year, in spite of often missing performance targets or other measures of investor value, data collected by the Financial Times show. read more

Peter Voser, Shell's chief executive, has called on governments to introduce a carbon tax or a minimum price for CO² because  as he told the Guardian  the ETS was failing to deliver sufficient incentives to kickstart expensive technologies such as carbon capture and storage (CCS).

In an interesting observation, Macquarie's Wood said that blocking the deal would make it hard for Australia's federal government to push Caltex to buy ExxonMobil and Royal Dutch Shell Plc's Australian refining assets on energy security grounds, if they should decide to sell them.

The refinery's various owners have been investigating soil and groundwater contamination for decades under state and federal oversight. Serious groundwater pollution problems extend as much as 180 feet underground, and more than a mile south of the property. Some of the site's worst pollution problems remain the responsibility of Premcor and Motiva Enterprises, the refinery's previous owners...

Financial Times

Advanced biofuels will not be in widespread use until about 2020, the chief executive of Royal Dutch Shell has said, puncturing hopes that they could be on the verge of a commercial breakthrough.read more

The big international companies such as BP and ExxonMobil are struggling to find enough new oil to replace their exploited reserves year-on-year and Shell found itself on the end of a major fine for exaggerating its reserves report to the Securities & Exchange Commission in the US.

In the spring of 2003, more than a million people marched through the streets of cities across Europe and the U.S. to rail against U.S. plans to invade Iraq and oust Saddam Hussein. Amid the chants for peace was an angry accusation: the war was merely a grab by Western companies for Iraq’s vast oil reserves.

Nearly seven years on  and after more than 4,600 Americans and tens of thousands of Iraqis have been killed  Iraq’s natural resources are only now emerging as spoils of war. As U.S. troops prepare to withdraw from the country next year, some of the world’s biggest energy companies, among them ExxonMobil and Royal Dutch Shell, are racing to lock up multibillion-dollar deals with officials in Baghdad that will allow them to exploit the country’s giant oil fields. The deals will not only allow Big Oil to return to Iraq for the first time since Saddam nationalized the industry in 1972. By modernizing a production system wrecked by conflict and embargoes, Iraq’s exports could also get a huge boost, putting the country’s parlous economy on firmer footing and allowing Iraq to take its place as an oil power almost equal to Saudi Arabia. (Watch a video about the gas shortage in Iraq.)read more

I note that you ignored my question about what, in Shell’s view, constitutes a “reasonable interval” between SAR applications from the same applicant. A response on that matter will be made after I receive the delivery of the promised information on or before 1st December i.e. by next Wednesday.read more

Published: Saturday November 28, 2009 MYT 3:31:00 PM

By STEPHEN THEN

MIRI: Employees of oil-giant Sarawak Shell are seeking Government help to stop an impending large-scale retrenchment exercise to be carried out by the oil and gas producer throughout this state.

The Sarawak Shell Staff Union, which represents 2,700 workers, submitted a memorandum of appeal on Saturday to the state government through Deputy Chief Minister Tan Sri Dr George Chan Hong Nam, pleading with the Government to intervene to save their jobs.

Union secretary Solomon Nayup and a delegation of top union officials met with Dr Chan at the Sarawak United People’s Party Miri headquarters here and appealed to Dr Chan to forward their plight to the higher state and Federal authorities.read more

AMSTERDAM, Nov 27 (Reuters) - Anglo-Dutch oil giant Royal Dutch Shell (RDSa.L) (RDSb.L) expects next year to be difficult in terms of consumer demand though the worst may be past, its chief executive said at an investor conference.

Just weeks ago, on 30 October, we published a leaked email from Andrew Manley, Shell Downsteam-One Programme Director, revealing the impact of the Vosification process, including delays on some important Shell IT projects. Manley acknowledged the consequential disappointment likely to flow from his announcement. Related Reuters article

Since then we have published articles from a Shell IT insider highly critical of some aspects of Shell IT operations…

SHELL BLOG

Comments

Bogus Group: Further to my post on this blog, 28 August'17, there may be some interest an an article in yesterday's Upstream "Trial set for clash of LNG players".

TotallyHackedOff: Shell - as I am sure with many global super majors- is heavy with narcissists at all levels. Lots of people like Trump rollicking around- get in their way and you’re a gonner! See you later Rexy baby!

TotallyHackedOff: In reply to Bonus Group and Another Concerned Employee- its clear reading from your posts that Shell and BG shared many business cultural similarities making the tie-up an obvious one. I know of a few Shell employees who resigned, joined BG and are now back at Shell again- it stinks of a plant/trojan horse ending! It is well known that Shell has an 'inner circle' and if you find yourself outside that as many of the technical folk do, you don't stand a chance. Its all a bit wink, wink nudge, nudge. I even remember one manager (now a VP of something) telling me how I needed to 'read between the lines' which made me think it was all a load of bollocks and how the politically adept arse kissers rose through the ranks blissfully unaware of how their actions impacted their colleagues. The alpha men and women were all the same- keen to get ahead at anyones expense and doing secret backroom deals. Its one ginormous playground and the bullies will win as they are keeping the other bullies in place.

Bonus Group: 'Another Concerned Employee'talks about Shell's 'scooby-doo' business priciples, BG's were just as opaque. If you asked someone in HR about policy you would be deflected to 'The Portal' and left to fend for yourself. Often the policies conflicted with each other and had no foundation in law. This was reflected in the hypocritical management 'do as I say, not as I do' policy.
The closest experience most of BG Senior Management had of oil rigs and platforms was reading about them in comic books. The Brasil Asset was a complete shambles with its 'Simple Simon' approach to geoscience and cappuccino lifestyle. Unfortunately, most of these overpaid sociopaths migrated to Shell and are waiting, mouth's open for their next bonus. Shell must be trying hard to find ways to cover up grotesque errors in reserves booked by this Asset. Hopefully, Shell's assurance process is better than BG's with its £2Bn failure.

Yet Another Concerned Employee: Carillion, for whom the bell tolls! Remarkable that a Shell Executive should have a finger in this pie with its aggressive auditing practices. More 'pulling the wool' over the shareholder's eyes. Were the auditors asleep at the wheel when this was happening? There should be a full investigation, and those responsible made accountable. Perhaps, sunny Brunei is a safe haven? I wonder what the extradition treaties between the UK and Brunei are?

Another Concerned Employee: Shell HR finds it easy to overlook its fake scooby doo business principles whenever it suits them. A number of staff implicit in OPL and the spin doctors trying desperately to cover up the crisis are still on payroll. It won't surprise anyone that Ceri was one of Brinded's loyal lapdogs during his dictatorship. Also no surprise she landed such a sweet job in Brunei.

Concerned Employee: Not sure if you know but..
Cerie Powell - ex EVP exploration now MD Brunei Shell Petroleum was a non exec director of Carillion (now in liquidation). She resigned once she was demoted to Brunei in 2016 (?) but given the news around the legacy issues involving Carillion, should she really hold a senior position in Shell Group ?

Bonus Group: It is understandable that a niche now exists in the market for a company similar to BG Group, but for Neptune Energy to set its aim at emulating and becoming like BG is nothing short of horrifying. Why anyone should wish to recreate the inept management, twisted HR policies and rancid technical half truths of BG Group in order to deceive the shareholders is beyond comprehension. If they do, then the Serious Fraud Office should be on the alert. Sammy 'two pools', whose past remit included selling Enterprise Oil to Shell, rather than ENI is made of sterner stuff. That said, his nuclear ambitions did fall somewhat short of those of Kim Yong Un. Let's wish Neptune Energy a long, scandal free future and greater integrity than bungling BG with its House of Cards and flamboyant ineptitude.

Bogus Group: Following the acquisition of Engie the Financial Times headline “Neptune Energy sets aim on being the next BG Group” may have sent a chill through some. To think there could possibly be a rise from the ashes is an alarming prospect
However there was some comfort in the company chairman statement “We have the opportunity to take the time to get it right”.
Hopefully this means their Ethics and Compliance foundation will actually be more than just another policy open to distortion by misconduct.

Bill Campbell: Is the New York City case against Oil Companies justifiable or just hot air?

Many, if not all prestigious US scientific journals estimate largest source of air pollution in US is caused by vehicle emissions. Current estimates that US has some 260 million automobiles and 11 million trucks. It is the daily emissions from these vehicles that are the cause of scientific concern. But anybody visiting Florida, and following a construction truck, will be familiar with black smoke in copious amounts emitting from the vertical exhaust pipe, sometimes it's so bad it can restrict your vision but Florida is not the only state of the US that does not require emission control, there are many more, monitoring for example (like a UK vehicle MOT) is not legally required or carried out.

So perhaps De Blasio should start suing these delinquent states.

In any case, I find the whole matter ludicrous in a country, where their President claims that human activity is not related in any way to global warming and appoints a head of EPA who is also so inclined (a man described by NY Times as an arsonist in the Fire Station) so why does Shell et all not call as witnesses in their defence the current EPA Director, or otherwise why does De Blasio not start by suing those states that allow millions of vehicles to pollute the atmosphere daily.
Bill

Bonus Group: Further to my last post on this blog. Sound Energy have now arranged a slap-up bean feast for their shareholders to be held on 15th February at Grace Hall, Leadenhall Street, London. Drinks at Carriages afterwards. Dress is formal so don't expect too energetic a food fight. Attendees must pay for their own tickets! All will be revealed about the new Coro strategy. You may recall that Sound shareholders will receive Coro shares as a result of the divestment of Sound's Italian assets. The question is whether Sound shareholders will end up in the soup.

Bonus Group: There are rumblings in the ether about Rockhopper Exploration plc having failed to perform Due Diligence with integrity in respect of their purchase of the Italian focused company Mediterranean Oil and Gas (MOG) in 2014, and in particular MOG's asset, the Ombrina Mare oil field.
Following the decision in February 2016 by the Ministry of Economic Development not to award the company a production concession covering the Ombrina Mare field, the company has considered its legal options with regard to obtaining damages and compensation from the Republic of Italy for breaching the Energy Charter Treaty (ECT).
Could this have anything to do with the sudden and unexpected departure of Rockhopper's Chief Operating Officer, one 'Good Time' Fiona MacAuley? Fiona, a Chartered Geologist, started her career with Mobil North Sea Limited in 1985 and has subsequently held key roles in a number of leading oil and gas firms across large mid and small cap E&Ps including BG and Hess.
Fiona is now Chief Executive Officer of Echo Energy plc where Stephen Whyte (also ex BG) is a Non-Executive Director, previously having been Chairman of Sound Energy. Fiona will also become a Non-Executive Director of Saffron Energy plc. It is proposed that Saffron acquires Sound Energy's portfolio of Italian interests and permits through the acquisition by Saffron of Sound Energy Holdings Italy Limited (SEHIL). SEHIL holds all of Sound Energy's Italian oil and gas interests through its own wholly owned subsidiary, Apennine Energy SpA (APN). It is proposed that Saffron will be renamed Coro Energy plc.
This is yet another 'reverse takeover' by the Sound Energy/Echo Energy Team. The share options for the directors are raining on them like confetti. Could there be bonuses in store for the Directors of this association of companies where the paint is never allowed to dry?
Plenty of 'smoke and mirrors' and wool being pulled over the shareholders' eyes in this can of worms.

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